NEXTracker, Inc. Class A ((NXT)) has held its Q2 earnings call. Read on for the main highlights of the call.
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NEXTracker, Inc. Earnings Call Highlights Strong Growth and Positive Outlook
The recent earnings call for NEXTracker, Inc. Class A was marked by a positive sentiment, driven by strong revenue growth, international expansion, and innovative product launches. Despite challenges posed by tariffs, the company’s financial health and market demand remain robust, contributing to an optimistic outlook.
Revenue Growth and Profitability
In the second quarter, NEXTracker reported a remarkable 42% year-over-year revenue growth, reaching $905 million. The adjusted EBITDA also saw a significant increase of 29%, amounting to $224 million. For the first half of fiscal 2026, the company achieved a record revenue of $1.77 billion, marking a 31% increase from the previous year.
Expansion in International Markets
NEXTracker announced the formation of NEXTracker Arabia, a joint venture with Abunayyan Holding, to expand its manufacturing footprint and commercial presence across the Middle East and North Africa. This strategic move underscores the company’s commitment to international growth.
Innovative Product Launches
The launch of NX PowerMerge in September and record eBOS bookings in Q2 highlight NEXTracker’s focus on innovation. Additionally, the company secured a multiyear agreement with a leading U.S. solar panel manufacturer for advanced module frame technology, valued at over $75 million.
Strong Financial Position
NEXTracker closed the quarter with $845 million in cash, no debt, and total liquidity of nearly $1.8 billion. This includes a $1 billion unsecured revolving credit facility with investment-grade terms, showcasing the company’s robust financial standing.
Positive Market Dynamics
The company is experiencing strong global demand for its products and services, with a growing backlog exceeding $5 billion. Record quarterly bookings for TrueCapture and Navigator control systems further emphasize the positive market dynamics.
Tariff-Related Challenges
NEXTracker faced tariff-related headwinds of approximately 300 basis points in Q2, an increase from 200 basis points in Q1, impacting profitability. The company anticipates a modest margin impact in the second half due to Section 232 tariffs and a higher percentage of international projects.
Forward-Looking Guidance
NEXTracker raised its full-year FY ’26 outlook, expecting revenue between $3.275 billion and $3.475 billion, adjusted EBITDA of $775 million to $815 million, and adjusted diluted EPS between $4.04 and $4.25. This guidance reflects confidence in sustained profitability and cash generation while scaling the platform globally.
In conclusion, NEXTracker’s earnings call painted a picture of strong growth and a positive future outlook. The company’s strategic initiatives in international expansion and product innovation, coupled with its solid financial position, position it well for continued success despite tariff-related challenges.